On Friday in Asia, euro fell against the dollar; the investors had adjusted their currency balances as it’s expected that there will be rise in the pair later in the global as the Chinese economic data will provide a tailwind for European and U.S. share markets.
According to dealers in Tokyo, the main key point for the euro is $1.2150, and massive amount of automated euro-buying orders are being places. So when these orders will be executed, the single unit will likely rise above $1.2250.
The euro was trading at $1.2115 against U.S. dollar at 0450 GMT.
Though there are largely unresolved debt issues in Europe, but the investors are increasingly looking to buy euros because of some positive news that are coming from the Europe. Spain the main country in Europe about which investors were worried about had successfully launched new three-year bonds on Thursday. Globally firm stock prices had also encouraged the investors for the euro as they sought to take on more risk.
Solid Chinese economic data had also encouraged the risk appetite because of its strong figures. The data shows that China’s industrial output expanded 16.5% in May, while it was expected by economists 17.0%. Its consumer price index rose 3.1% which is better than expectations for a 3.0% rise, while retail sales increased 18.7%.
Though the Chinese data impact can be limited in Asia but its figures may have larger influence in European and U.S. markets.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 87.119 from 86.972.
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